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Attachment Statement, Form 2553, (pursuant to Revenue Procedure 2003-43)
This statement is to explain that the corporation inadvertently failed to file form 2553 in a timely manner [OR NOT FILED FOR REASONABLE CAUSE]
I/We respectfully XXXXX XXXXX of the fact that “ Section 1362(b)(5) provides that if (A) an election under § 1362(a) is made for any taxable year (determined without regard to § 1362(b)(3)) after the date prescribed by § 1362(b) for making the election for the taxable year or no election is made for any taxable year, and (B) the Secretary determines that there was reasonable cause for the failure to timely make the election, the Secretary may treat the election as timely made for the taxable year (and § 1362(b)(3) shall not apply.”
Rev. Proc. 2003-43, 2003-1 C.B. 998 (2003)
The corporation meets all S-Corporation eligibility criteria, as a domestic corporation, with shareholders being limited to individuals, and not being partnerships, corporations or non-resident aliens. Further, the corporation will not have more than one class of stock nor have more than 100 shareholders. The S-Corp is not in-eligible as it is not an insurance company, financial institution or international sales organization. And finally, the S-Corp agrees to a fiscal (calendar year) that corresponds to the tax year for individual tax returns.
The corporation failed to qualify as an S-Corp solely because it did not file Form 2553 in a timely manner.
Less than 24 months have passed since the original due date of Form 2553.
The corporation [EITHER] (1) has reasonable cause or (2) inadvertently failed to file Form 2553 in a timely manner.
The corporation has not yet filed tax returns for the first tax year for which it intended to file as an S-Corp.
Form 2553 is filed not later than 6 months after the due date, without regard to extensions, of the first tax return for which the corporation intended to file as an S-Corporation.
And finally, Shareholder(s) and other taxpayers have not reported their income in a manner inconsistent with the corporations intention to file as an S-Corporation.
Signed: [ALL SHAREHOLDERS MUST SIGN] _________________________________